Form 16 Part A and Part B Explained: How to Verify Before Filing ITR

What is Form 16?

Form 16 is a statutory certificate issued by an employer to salaried employees under Section 203 of the Income Tax Act, certifying the total salary paid and tax deducted at source (TDS) during the financial year.

Difference Between Part A and Part B

• Part A (Generated from TRACES): Contains Employer Name, Employer TAN, Employee PAN, summary of tax deposited quarterly in government treasury with BSR codes and Challan numbers.
• Part B (Prepared by Employer): Detailed salary breakup: Gross salary under Section 17(1), perquisites under 17(2), exemptions under Section 10 (HRA, LTA, standard deduction ₹75,000), deductions under Chapter VI-A (80C, 80D, 80CCD), and net taxable salary.

Checklist Before Filing Your Return

1. Ensure Part A bears the authentic TRACES watermark.
2. Cross-check total tax deposited in Part A with Form 26AS. If Form 26AS shows less TDS, demand your employer file a revised quarterly TDS return (Form 24Q).
3. If you changed jobs during the year, collect Form 16 from BOTH employers and combine salaries to avoid surprise tax demand.